Gold Drops as Government Shuts Down

Gold futures dropped back below $1,300 an ounce

Investors failed to see any safe haven value in gold on the first day of a politically driven shutdown of the U.S. government, as the metal tumbled in Tuesday’s trading.

National parks and other federal government operations closed their doors as congressional Republicans and the White House remained in a stand-off over GOP attempts to link continued federal funding to a delay in the implementation of the Affordable Care Act, a key provision of which launched today.

Gold futures for December delivery fell 3.1% to $1,286.10 per ounce on Tuesday, according to CME Group. Gold traded as high as $1,337.80 and as low as $1,282.40. Bullion closed in London at $1,291, according to BullionVault.

Silver futures for December delivery dropped 2.5% to $21.18 per ounce. Tuesday’s high for silver was $21.97, while the low was $20.63.